Toyota global vehicle output rises 44.3% in August

TOYOTA Motor said on Thursday (Sep 29) its global vehicle production grew at a record pace for the month of August, as the sector recovered from the Covid-19 pandemic and production capacity increased, mainly overseas.

The announcement offers a temporary bit of relief for the Japanese automaker, which has been under scrutiny over whether it can stick to its annual production target of 9.7 million vehicles, even as China dials back pandemic restrictions and chip shortages are showing some signs of easing.

Vehicle production soared 44.3 per cent in August year on year, the first increase since March. The world’s largest automaker by sales produced 766,683 vehicles worldwide last month, above its target of around 700,000 and above year-ago output of 531,448.

Output increased mainly overseas, with domestic production up 5.6 per cent year on year and overseas production jumping by 65.1 per cent from a year ago, also a record rise for the month of August.

Toyota was able to secure more semiconductor components than anticipated primarily in Asia, a region where there is also strong demand from consumers, as chips shortage eased, a spokesperson said.

Production in the first 5 months of the current fiscal year that started in April is now 6.7 per cent short of the company’s initial plans, as opposed to 10.3 per cent last month, according to Reuters calculation based on company data. The company gives out monthly production targets.

Overseas sales also hit a record for the month of August, driven by a rebound from a decline in sales last year due to coronavirus outbreaks in China and the rest of Asia.

Overseas sales rose by 8.9 per cent in August year on year to 694,272 vehicles, while in Japan they fell by 25.8 per cent to 82,775 vehicles because parts supply shortage and Covid-19 outbreaks disrupted production.

Toyota president Akio Toyoda is set to attend the US national dealers convention on Thursday in Las Vegas, marking his first in-person appearance before US dealers since the pandemic.

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Toyota’s US production numbers went up by 11.9 per cent in August year on year, the first increase since March, thanks to increases in production capacity and the fact that shortages of semiconductors and other components forced suspensions at US factories last year.

Its US sales, on the other hand, fell 9.8 per cent last month. REUTERS